One of the largest private bingo operators in the UK is to float on the stock market to raise funds to expand the business, it announced yesterday.

Carlton Clubs hopes to achieve a valuation of £40m when it floats on the AIM market of the London Stock Exchange.

The company, based in Inverness, operates 18 clubs across Scotland and the north of England and employs more than 500 staff.

Former Scotland rugby captain Andy Irvine, who is managing director in Scotland for international property consultants Jones Lang LaSalle, is to be appointed as a non-executive director of the company.

Carlton managing director Peter Perrins said the company had come a long way since it was acquired in a buyout six years ago.

"We have put in place a multi-million pound investment programme to upgrade our bingo clubs and are creating the company's first purpose-built, stand-alone, bingo club in Scotland at our new site in Inverness," he said.

"In addition, we have acquired a 3.3-acre site in Fife for a second new bingo club."

Mr Perrins said: ''Having already successfully taken the business through two financial restructurings in the past six years, enabling the directors to take over control of the business, this bold step should be seen as a further commitment on our part to strength- ening Carlton Clubs by widening our capital base. This is a company with a tremendous future in a dynamic sector and we want to be the team that leads it to even bigger and better things."

Carlton Clubs, formerly the bingo division of Taylor Clark plc, was acquired by the present management team in 1998 and a secondary buyout of the venture capitalist interests took place in 2002.